2024-01-15 18:50:57
By Le Figaro with AFP
Published 37 minutes ago, Updated 8 minutes ago
The European Commissioner for the Economy, Paolo Gentiloni, expressed his “growing concerns about the risks linked to geopolitical tensions”. PUNIT PARANJPE / AFP
Tensions have increased in recent days in the Red Sea, where Iran-backed Yemeni Houthi rebels are attacking ships believed to be linked to Israel, in solidarity with Palestinians in Gaza.
The European Union is concerned about the risks to the economy from tensions in the Red Sea, in particular their possible impact on energy prices, European Commissioner for the Economy Paolo Gentiloni said on Monday. “We know we’re starting this year with moderate growth, some good news about the labor market, but also growing concerns about risks from geopolitical tensions.“, declared Paolo Gentiloni, before a meeting of EU finance ministers on Monday and Tuesday in Brussels.
«What is happening in the Red Sea seems, for the moment, to have no consequences on energy prices and inflation. But we think we need to monitor this very closely because these consequences could materialize in the weeks to come», he warned as the Twenty-Seven were due to discuss the economic outlook for 2024.
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Germany’s gross domestic product (GDP) fell by 0.3% in 2023, after growth of 1.8% in 2022, the German statistics office Destatis announced on Monday. Some experts see Europe’s largest economy remaining in recession this year, due to high interest rates, slowing global demand and the cost of energy.
Tensions have increased in recent days in the Red Sea where Yemeni Houthi rebels supported by Iran are attacking ships believed to be linked to Israel, in solidarity with the Palestinians in Gaza. In response, the United States and the United Kingdom carried out strikes on Houthi sites on Friday and Saturday.
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